Correlation Between Akenerji Elektrik and Koza Anadolu
Can any of the company-specific risk be diversified away by investing in both Akenerji Elektrik and Koza Anadolu at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Akenerji Elektrik and Koza Anadolu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akenerji Elektrik Uretim and Koza Anadolu Metal, you can compare the effects of market volatilities on Akenerji Elektrik and Koza Anadolu and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Akenerji Elektrik with a short position of Koza Anadolu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akenerji Elektrik and Koza Anadolu.
Diversification Opportunities for Akenerji Elektrik and Koza Anadolu
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Akenerji and Koza is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Akenerji Elektrik Uretim and Koza Anadolu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koza Anadolu Metal and Akenerji Elektrik is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Akenerji Elektrik Uretim are associated (or correlated) with Koza Anadolu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koza Anadolu Metal has no effect on the direction of Akenerji Elektrik i.e., Akenerji Elektrik and Koza Anadolu go up and down completely randomly.
Pair Corralation between Akenerji Elektrik and Koza Anadolu
Assuming the 90 days trading horizon Akenerji Elektrik Uretim is expected to generate 1.61 times more return on investment than Koza Anadolu. However, Akenerji Elektrik is 1.61 times more volatile than Koza Anadolu Metal. It trades about 0.1 of its potential returns per unit of risk. Koza Anadolu Metal is currently generating about 0.07 per unit of risk. If you would invest 485.00 in Akenerji Elektrik Uretim on September 4, 2024 and sell it today you would earn a total of 658.00 from holding Akenerji Elektrik Uretim or generate 135.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akenerji Elektrik Uretim vs. Koza Anadolu Metal
Performance |
| Timeline |
| Akenerji Elektrik Uretim |
| Koza Anadolu Metal |
Akenerji Elektrik and Koza Anadolu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akenerji Elektrik and Koza Anadolu
The main advantage of trading using opposite Akenerji Elektrik and Koza Anadolu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akenerji Elektrik position performs unexpectedly, Koza Anadolu can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Koza Anadolu will offset losses from the drop in Koza Anadolu's long position.| Akenerji Elektrik vs. Koza Anadolu Metal | Akenerji Elektrik vs. Sekerbank TAS | Akenerji Elektrik vs. Akcansa Cimento Sanayi | Akenerji Elektrik vs. E Data Teknoloji Pazarlama |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.
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